Base Model Initial Investment -$90,000 MARR = Annual Benefit $20,000 0.14 Project Life Suggestion: This problem is simple enough to calculate NPV by hand to double check your formula. NPV = ($21,338)| IRR = 3.6%

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Please solve table and show all formulas
29
3. Create a Two-Way Data Table to Explore Sensitivity of NPV to Project Life and Annual Benefit
30
31
Annual Benefit
32
($21,338) $10,000 $15,000 $20,000 $25,000 $30,000
33
4
34
35
36
7
37
8
38
9
39
10
40
11
41
12
42
43
44
Additional worksheets follow.
45
46
47
Project Life
Transcribed Image Text:29 3. Create a Two-Way Data Table to Explore Sensitivity of NPV to Project Life and Annual Benefit 30 31 Annual Benefit 32 ($21,338) $10,000 $15,000 $20,000 $25,000 $30,000 33 4 34 35 36 7 37 8 38 9 39 10 40 11 41 12 42 43 44 Additional worksheets follow. 45 46 47 Project Life
5
Base Model
6
Initial Investment
-$90,000
7
MARR =
Annual Benefit
$20,000
8
0.14
Project Life
5
($21,338)
3.6%
Suggestion: This problem is simple enough to calculate
NPV by hand to double check your formula.
NPV =
10
IRR =
11
Transcribed Image Text:5 Base Model 6 Initial Investment -$90,000 7 MARR = Annual Benefit $20,000 8 0.14 Project Life 5 ($21,338) 3.6% Suggestion: This problem is simple enough to calculate NPV by hand to double check your formula. NPV = 10 IRR = 11
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